AI/ML Innovations Inc. operates in the digital healthcare sector, focusing on AI and machine learning for personal health monitoring. The company boasts a strong gross margin of 97.7%, indicating effective cost management; however, it faces significant concerns with negative EBITDA and net margins, suggesting operational inefficiencies. While a solid current ratio of 2.09 indicates good liquidity, the high negative return on equity (ROE) and return on assets (ROA) raise red flags regarding profitability. Overall, the high margins juxtaposed with poor financial performance warrant cautious consideration.
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Company has $1.1M in cash but burned $1.4M last quarter. At this burn rate, only 0.8 quarters of runway remain without additional financing.
Revenue fell 49.8% year-over-year from $335K to $168K. The decline has persisted for multiple quarters.
Company posted a loss of $-6.6M over the last year, representing 3910.0% of revenue.
Operating cash flow has been negative for 3 consecutive quarters, burning $5.6M over the last year.
Gross margin expanded by 30.1 percentage points, indicating improved pricing power or cost efficiency.
Operating margin expanded by 153.6pp, demonstrating strong operational leverage.
Both gross margin (+30.1pp) and operating margin (+153.6pp) are expanding simultaneously, indicating the company is scaling profitably.
Exceptional gross margin of 98.0% indicates strong pricing power and competitive moat.
Fortress balance sheet: cash covers total debt 6.1×, providing significant financial flexibility.
Valuation, risk assessment, competitive positioning, and key insights — all in one report.
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Based on 2026-Q2 (October 31, 2025)